If liability occurs from one property, it is restricted to the assets contained in that entity, i.e., the single property held in said entity.3.

Downside would be restrictions of use due to HOA. 

What strategies can I implement to maximize rental income from my first property, which I intended to convert into two units ( Unit 1:Main house, Unit 2: Basement sun room) but cannot due to zoning restrictions? 

I dont think I can demand more rent and the odds of someone using it are lower.

Thats becuase your odds of repairs are much higher on D class than A.

The problem is that they searched for liens and judgments but didn't really do a full title search for things like restrictions (e.g.

I plan to build a 6 unit multi-residential building on the back of the property in the next few years which most likely will complicate keeping the current SBA-HEDCO loan due to restrictions of the loan.  

Those loans do come with some restrictions and fees for the life of the loan. 

Sometimes a 6 or 7 pref isn't sexy but if it's a strong investment with limited variables to the cash flow stream then might be better than a pie in the sky investment where the odds of not turning out well are higher than doing good.

The average income in the zip code is about $90k.The population in the 34746 zip code in young (median 38 years) and growing from 53k in 2022 to nearly 60k in 2024.Rent by room is not as popular in this zip code as it is in the 34741 zip code, perhaps reflecting HOA restrictions as well as building configuration.